Report author: Andrew Hall Tel: 0113 2475296 Report of Director of City Development Report to Scrutiny Board (Sustainable Economy and Culture) Date: 20 December 2012 Subject: BUS SERVICES IN LEEDS Session 2 Are specific electoral Wards affected? Yes No If relevant, name(s) of Ward(s): Are there implications for equality and diversity and cohesion and Yes No integration? Is the decision eligible for Call-In? Yes No Does the report contain confidential or exempt information? Yes No If relevant, Access to Information Procedure Rule number: Appendix number: Summary of main issues 1. At their September 2012 meeting the Board considered Terms of Reference for an inquiry into “bus services in Leeds”. The report submitted for the first session provided initial information on: • Background and context to deregulation of bus services • Information on the role of the West Yorkshire Integrated Transport Authority in relation to bus services • The role of the Highway Authority • Opportunities and barriers in relation to increasing bus usage 2. This report for the second session of the inquiry will focus on future strategy and delivery including: • Update on current key issues, eg ticketing, fares, journey times, reliability, routes • Issues of local accountability and governance for Leeds in relation to the provision of bus services • Background and context to the Area Bus Network Review programme, information on the consultation process and details of the proposals for Leeds • Overview of the Bus Strategy for West Yorkshire and details of the proposals for the West Yorkshire Bus Quality Contract Scheme 3. An additional third enquiry session has been agreed, to take place on 31 January 2013, when bus operators and passenger representatives will be invited in for a discussion on Bus Services In Leeds Recommendations 4. Members are requested to note and comment on this report. 1 Purpose of this report 1.1 This report follows on from the previous Scrutiny Board report which provided an introduction into Bus Services in Leeds, and outlined the associated Key Issues. This report outlines the challenges and opportunities associated with the Area Bus Network review programme, the current position in terms of a Bus Strategy for West Yorkshire, synergies with the City Deal and the creation of a combined authority for West Yorkshire. 2 Background information 2.1 The previous report gave Members the historical background, to the current deregulated bus market, decline in bus patronage and service levels. The report outlined the key issues regarding the integration of bus services, bus ticketing, bus reliability and punctuality, bus user satisfaction, journey speed and congestion. 2.2 The third West Yorkshire Local Transport Plan (LTP3) sets out a comprehensive strategy to tackle the decline in bus patronage, under the themes of Asset Management, Travel Choices, Connectivity and Enhancement to the transport system. The Plan also proposes a new approach to working with bus operators through a Bus Strategy for West Yorkshire in order to address the sustained decline of bus patronage. In addition to this the recently announced City Deal for the Leeds City Region has a strong emphasis on transport, which seeks to bring together local and national funding with devolved powers and new governance arrangements. 3 Main issues 3.1 Metro are undertaking a programme of Area Bus Network Reviews in each District in order to achieve significant savings in the budget for tendered services, The purpose of the review will be; Establish and raise awareness the core network of high frequency bus services in each area as defined and promoted in the LTP3; Engage with commercial bus operators on those services which operate without Metro subsidy; Review and redesign the tendered bus network in order to reduce costs in line with Metro’s revised budget position. 3.2 The Leeds review will involve changes to contracts and services from July 2013. A set of proposed changes to bus services will be developed and issued for consultation early in 2013. The review is seeking to obtain savings from the tendered bus network whilst protecting the on-going economic viability and social benefit of the bus network. The total value of Metro specified services under review in the District is £3.5 million pa. 3.3 The West Yorkshire Passenger Transport Executive has provided a report on the Leeds Area Bus Network Review. This is included in appendix 1. Bus Strategy for West Yorkshire 3.4 A high quality integrated bus network for Leeds and West Yorkshire is key to achieving Local Transport Plan objectives. Proposal 16 of LTP3 outlines aspirations for a ‘new framework for local bus services as part of an integrated transport system’, through the implementation of a Quality Bus Contract Scheme to help deliver improved local bus services in West Yorkshire, replacing the existing deregulated market with a system of contracts, as currently operates in London. Partnership Offer 3.5 The four largest bus operators in West Yorkshire, and a number of smaller operators, have formed an association – the Association of Bus Operators in West Yorkshire (ABOWY). ABOWY have submitted a collective partnership proposal and consider that their proposals address the detailed requirements which have been developed on the basis of approved WYITA reports and the objectives and strategy set out in the third West Yorkshire Local Transport Plan. 3.6 The operator proposals have considerable merits and would provide significant customer benefits and would be likely to have a positive impact on bus patronage. The main area of contention has been around ticketing. Operators see multi- operator tickets as premium products, priced higher than similar operator only products. Metro refutes this view, and believes that operators introduced many of their products as a way of protecting market share by discouraging competition. 3.7 The Authority meeting of 29 June 2012 endorsed a Bus Quality Contract Scheme as the preferred approach to addressing the decline in bus patronage and rejected the partnership offer from the Association of Bus Operators in West Yorkshire (ABOWY). The report to the Authority meeting advised that: ’On balance, it is recommended that the Quality Contract option should be adopted as the preferred approach as it would, on the basis of work undertaken to date, provide the greatest benefits and be the most certain way of achieving the Authority’s aspirations for a local integrated transport system. This decision would provide a clear signal of the Authority’s intentions but would not rule out further consideration of a partnership offer at a future date as the scheme development process requires on-going justification of the preferred approach’ Better Bus Areas 3.8 The Department for Transport publication ‘Green Light for Better Buses’ (March 2012) proposed support for partnership working between bus companies and local authorities, reform the way that the Bus Service Operators Grant (BSOG), a subsidy to operators is paid. Improve competition in English local bus markets, and bring local transport authorities and bus companies together to help develop effective multi-operator ticketing schemes. 3.9 The Department for Transport have now published a consultation document regarding the devolution of Bus Service Operator Grant (BSOG) and the criteria for Better Bus Areas. The proposals in the consultation document would, in effect, preclude an authority developing proposals for a Bus Quality Contract Scheme from bidding to become a Better Bus Area and benefit from devolved and additional funding. the proposal for Better Bus Areas could have significant implications for the Business Case for a Bus Quality Contract Scheme for West Yorkshire as it could affect the availability of funding in different scenarios. 3.10 ABOWY members have indicated a desire to revisit and enhance the partnership offer in the light of the proposal for Better Bus Areas and the development of a West Yorkshire Transport Fund. They have also indicated a willingness to give fresh consideration to actions that would address the significant gaps between the partnership offer and the Authority’s aspirations. 3.11 The West Yorkshire Council Leaders have recently confirmed their support for a Bus Quality Contract Scheme as it offers the potential for better alignment with wider policy objectives and the proposed West Yorkshire Transport Fund, and would complement devolution initiatives set out in the Leeds City Region Deal. The Leaders have requested that the Authority give urgent consideration to whether a revised partnership offer, with the opportunity to bid for Better Bus Area status, should be accepted or the proposed Quality Contract Scheme should be progressed. 3.12 The current legislation provides for both partnership and quality contract approaches to enhancing local bus services under the provisions of the Local Transport Act (2008). 4 Local Governance and Accountability 4.1 As outlined in the previous report the under Transport Act 2000 (as amended by the Local Transport Act 2008), The West Yorkshire Integrated Transport Authority (WYITA) is solely responsible for developing policies for the promotion and encouragement of safe, integrated, efficient and economic transport to, from and within West Yorkshire, through the Local Transport Plan (LTP3), in consultation with the Districts. 4.2 The Metropolitan District Councils within West Yorkshire have a duty to carry out their functions to deliver the policies of WYITA within LTP3, and to have regard to the proposals of WYITA within LTP3 for delivering those policies, when carrying out those functions. 4.3 The recently announced City Deal for the Leeds City Region has a strong emphasis on transport which seeks to bring together local and national funding with devolved powers and new governance arrangements to further strengthen the role of transport in delivery of economic growth. It will manage £1bn of transport investment from 2014, supported by funding from the Department for Transport, with the aim of enabling economic growth by reducing journey times and improve connectivity with neighbouring areas.